"Fair Trade” is a label that we see every day in supermarkets, cafes, supermarkets and shops. It is a social movement who's goal is to help producers in developing countries achieve better trading conditions. It is also set up in support sustainable business. There is a level of concern over how much the farmers and workers in poorer conditions are receiving, and fair trade companies wish to support them with three main beliefs; producers have the power to express unity with consumers, that an inequality of wealth distribution exists between different nations, and that buying products from developing nations supports sustainable business and development.
More consumers in the millennial generation are spending more money on day to day products from ethical companies instead of opting for cheaper products from companies that do not support these values. They feel it is worth spending more money on companies that support their beliefs and values, and therefore, the value of being a fair trade company is increasing as demand rises for such products.
These days companies pay as much as 2% of their profit to have the “Fairtrade” logo on their products. The standards required by Fairtrade International, formerly FLO (Fairtrade Labelling Organisations International) include a minimum price for producers and development initiatives, which is funded by a 10% surcharge on certified products. Companies are pressured to register with the FLO brand as it has become a distinctive label that consumers expect to see on the products they are buying, and so the “Fairtrade” logo has become the standard brand in the field. Ironically, these multibillion dollar logo has become it's own business, and has had problems supplying the producers with the benefits it promises as it struggles to recoup the cost of labelling.
Some British supermarkets are setting up their own fair trade brands to support “the little guys”. They are questioning the values of the “Fairtrade” logo and finding that they can support growers and producers in developing countries in their own way without relating to the standard “Fairtrade” brand. The owner of Mojo coffee in New Zealand pays his suppliers almost twice the premium they would receive under the “Fairtrade” logo but refuses to register with Fairtrade international as that would require him sending a cheque for 2% of his profits to a conglomerate in Germany. Some companies feel that they can do more to support developing countries and the fair trade social movement in their own way instead of simply acquiring a logo on their product.
The benefit of registering with Fairtrade international is that you can display their logo on your products which is instantly recognised by your consumers and displays your ethical commitments and beliefs. For those millennials who shop with a sustainably and ethically conscious, this is important, and it could attract a larger and more refined consumer base for your products. If you decide to own a fair trade business by your own means, it is more difficult to portray to your customer base. The logo has become so international and so recognisable that it does all the speaking for you and your business.